New | Three top mainland firms tap the market for US$4.62 billion
A trio of mainland firms yesterday unveiled plans to raise a combined US$4.62 billion of capital, adding to the flood of equity issuance in Hong Kong.
A trio of mainland firms yesterday unveiled plans to raise a combined US$4.62 billion of capital, adding to the flood of equity issuance in Hong Kong.
"It was probably the biggest single day for cash calls since mid-May," said Sam Chi Yung, a strategist at Delta Asia Financial. On May 13, seven companies announced plans to raise a total of HK$40 billion, he said.
The Hong Kong, Shanghai and Shenzhen stock exchanges saw companies raise a total of US$29.79 billion through share placements in May, a more than fivefold increase from a year earlier, according to data provider Dealogic.
Yesterday morning, BYD, the world's largest supplier of rechargeable batteries, said it aims to raise 15 billion yuan (HK$19 billion) from an A-share placement to make new investments as well as to repay loans.
In a filing with the Hong Kong stock exchange, BYD said it would issue up to 261 million new A shares on the Shenzhen stock exchange at 57.4 yuan apiece, a 24.5 per cent discount to its last traded price of 76 yuan. The A shares will be placed to a maximum of 10 investors. The planned 15 billion yuan share placement will be the fifth-largest offering by a Chinese issuer this year, said Dealogic.
Also yesterday morning, Alibaba Pictures announced plans to raise a net HK$12.11 billion from a share placement that may be used for acquisitions.
The shares will be placed to at least six independent institutional and/or individual investors at HK$2.90 a share, a nearly 20 per cent discount to its last traded price before it was suspended on Tuesday.
The placement comes slightly more than a month after mainland movie star Zhao Wei and husband Huang Youlong sold shares in Alibaba Pictures and pocketed a profit of HK$588.9 million. The couple sold 255.99 million shares at an average of HK$3.19 on April 29 to 30. The sale reduced the couple's stake in the company to 7.96 per cent from 9.18 per cent.
Lenovo Group, the world's largest personal computer supplier, also announced the issuance of five-year notes to raise 4 billion yuan due in 2020 with interest at 4.95 per cent per year.
"The proceeds [are] intended to be used for general corporate purposes including working capital," said chairman Yang Yuanqing in the company statement.
BYD's Hong Kong shares rose 8.8 per cent to close at HK$59.30 while its mainland shares were suspended from trading after they jumped by the daily 10 per cent limit, to 83.6 yuan. Shares in Alibaba Pictures fell 5.8 per cent to HK$3.41 and Lenovo dipped 0.32 per cent to HK$12.16.
